One thing that doesn't get discussed much is how shill bidding negatively affects other SELLERS as well.
Unlike Leon and other deep pockets who can pay anything (just kidding, Leon), many of us have a budget.
So for example, let's say I have a $500 budget. I am looking at Bob's item A (auction) and Joe's item B (fixed price $300). My main goal is item A, but will buy item B if I still have enough left in my budget. I put in a max bid of $300 for item A (up front or snipe, doesn't matter). If item A gets shilled to over $200, then Joe doesn't sell item B. So Bob's shill bidder just cost Joe a sale. How do you think Joe, as a SELLER, would view this?
This IS different than losing out to non-shill Sam bidding over $200 on item A (and then Joe not selling item B), which is letting the market determine the actual value of Bob's item, and to what extent Joe can compete in a "free" market.
(I'm sure someone could come up with a better example of adverse effect on the seller than this)
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